Identify the normal balance (debit or credit) for each of the following accounts.

To identify the normal balance (debit or credit) for each type of account, we need to understand the basic accounting equation and the nature of each account type. Here is a brief guide:

Step 1: Define the Problem

Identify the normal balance for different types of accounts in accounting.

Step 2: Break Down the Problem

1. Assets: These are resources owned by a business.
2. Liabilities: These are obligations or debts owed by a business.
3. Equity: This represents the owner's claim after liabilities are settled.
4. Revenue: Income earned from normal business operations.
5. Expenses: Costs incurred in the process of earning revenue.

Step 3: Apply Relevant Concepts

• Assets: Normal balance is a debit.
• Liabilities: Normal balance is a credit.
• Equity: Normal balance is a credit.
• Revenue: Normal balance is a credit.
• Expenses: Normal balance is a debit.

Step 4: Analysis, Verify and Summarize

• Assets increase with debits and decrease with credits.
• Liabilities increase with credits and decrease with debits.
• Equity increases with credits and decreases with debits.
• Revenue increases with credits and decreases with debits.
• Expenses increase with debits and decrease with credits.

Final Answer

• Assets: Debit
• Liabilities: Credit
• Equity: Credit
• Revenue: Credit
• Expenses: Debit

This classification helps in maintaining the balance in the accounting equation: Assets = Liabilities + Equity.